Indices opened in negative territory on the Milan Stock Exchange as investors remained cautious ahead of the U.S. Federal Reserve's interest rate decision later today.
Markets are pricing in with nearly 90% certainty that a 25 basis point rate cut will be announced, but attention is focused on potential guidance regarding the future path of the rate cycle.
Around 9:30 a.m., the Ftse Mib index was down 0.40%.
Selling pressure was evident across nearly all sectors. Cement stocks, which had recently gained on expectations of reconstruction in Ukraine, were particularly hard hit, with BUZZI down 3.7% and CEMENTIR losing 1.8%.
Banks also declined, with the sector index falling by 4%. Among the major players, UNICREDIT was flat, while INTESA dropped 0.6%. MPS and its subsidiary MEDIOBANCA both retreated by around 0.6%.
In the insurance sector, GENERALI lost 1.6% after yesterday's rally.
BFF BANK suffered a sharp decline of 5.5% after Deutsche Bank downgraded its rating to 'hold' from 'buy'.
Among industrials, FERRARI slipped about 2% after Morgan Stanley initiated coverage with an 'equal weight' rating and a target price of 367 euros.
Finally, SAIPEM and TENARIS both posted gains of around 0.7%.
(Reporting by Giancarlo Navach, editing by Stefano Bernabei)
